6 October 2006, 18:03   Dollar recoups knee-jerk losses on closer inspection of US jobs data

The dollar suffered a knee-jerk sell-off after the headline number in today's crucial US jobs report disappointed to the downside, but soon more than recouped its losses following a closer inspection of the data. The Labor Department reported that US employers added 51,000 jobs in September, lower than the 120,000 expected by Wall Street. The September rise was the lowest since last October and stoked immediate concerns about the extent to which the US economy is slowing down. However, the impact was diminished by the news that the August increase was revised higher to 188,000 from 128,000. In addition, the unemployment rate, which is based on a separate survey, fell to 4.6 pct last month from 4.7 pct, while average earnings rose 0.2 pct to 16.84 usd. Analysts said today's data will further cement expectations that the US Federal Reserve will keep its benchmark Fed funds rate unchanged at 5.25 pct for the third meeting running on Oct 25.

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